How much can you earn on trading to a novice investor. Part 101. Trading (continued)

We continue a series of publications on trading in order to understand in practice how much money can be earned. novice investor using only forecastspublished on our website. To understand how useful they are, we decided to conduct an experiment and simulate a situation in which a person who knows about trading only what you need to “buy cheaper and sell more expensive”, tries to get additional income in his spare time by investing part of his money in cryptocurrency trading

Since last week we have been out of the market andwatched the fall in the price of Litecoin. On March 1, the fall stopped at a minimum point of 56.21 USDT. According to ForkNews forecasts dated 03/02/2020, in the near future, the pair may recover to the resistance area of ​​64.00 USD.

To do this, customers need to gain a foothold ataverage prices (60.67 USDT). At the time of writing, the price is consolidating just above the hourly EMA55. Relying on the forecast, suppose today there will be a re-test of the level of 64.00 USDT. In order to minimize risks and increase potential income, it would be right to go long from the level of 60.00 USDT with a very short stop, immediately behind the support of 78.6% fibonacci (presumably at the level of 59.00 USDT).

Nevertheless, we have repeatedly run intosituations when, before the bullish breakthrough, market makers first lowered the price below the support level, knocking longists out of position, and then the price grew rapidly. Therefore, considering such traps, we would need to lower the Stop Loss level to the level of 58.00 USDT. Falling prices below this level may completely cancel the rise in resistance at 64.00 USDT.

Of course, such a low Stop Loss level makes our deal less attractive in terms of risk / profit ratio, but we will try to stop on this option.

While we described the trading plan, our order for the purchase of 3 LTC at the rate of 60.00 USDT was executed.

Now we can only observe the market movement and record the result of a trade transaction, which we will discuss in our next publication.